US to give Micron $6.1 bn for American chip factories – Tech Xplore
Click here to sign in with or
Forget Password?
Learn more
share this!
1
Twit
Share
Email
April 25, 2024
This article has been reviewed according to Science X’s editorial process and policies. Editors have highlighted the following attributes while ensuring the content’s credibility:
fact-checked
reputable news agency
proofread
by Beiyi SEOW
Micron is set to receive up to $6.1 billion in grants from the US government to help build its semiconductor plants in New York and Idaho, President Joe Biden said on Thursday.
The announcement came as he traveled to Syracuse, New York, marking the latest in a series of efforts by Washington to bring semiconductor production back to the country.
“We used to have 40 percent of this market. Over time, we stopped making them,” Biden said.
Recounting how the COVID-19 pandemic shut down chip factories overseas, triggering a semiconductor shortage and fueling inflation and long wait times for products, Biden vowed never to let the United States “be vulnerable” like that again.
The United States has been working to ensure its lead in the chip industry, especially with regards to the development of artificial intelligence—both on national security grounds and in the face of competition with China.
The investment will help Micron “bring back leading-edge memory chip manufacturing to the United States for the first time in 20 years,” Chuck Schumer of New York, the Senate majority leader, told reporters.
The $6.1 billion in direct funding comes under the CHIPS and Science Act, a major package of funding and tax incentives passed by Congress in 2022 to boost research and US semiconductor production.
The White House said the funds will go to supporting construction of two facilities in Clay, New York, and one in Boise, Idaho, where Micron is headquartered.
The US Commerce Department will also make up to $7.5 billion in proposed loans available under a preliminary deal.
Micron is set to invest up to $125 billion across both states over the next two decades “to build a leading-edge memory manufacturing ecosystem,” according to the White House.
The US chipmaker’s total investment is due to create more than 70,000 jobs, including 20,000 direct construction and manufacturing roles.
While semiconductors were invented in the United States, the White House noted that the country makes just around 10 percent of the world’s chips now—and “none of the most advanced ones.”
Micron CEO Sanjay Mehrotra called the step a “historic moment” for US semiconductor manufacturing, saying its US investments will “create many high-tech jobs.”
“Leading-edge memory chips are foundational to all advanced technologies,” said Commerce Secretary Gina Raimondo.
She added that returning the development and production of advanced memory semiconductor technology to the country is “crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security.”
Chips are needed to power everything from smartphones to fighter jets, and are increasingly in demand by automakers, especially for electric vehicles.
But the global chip industry is dominated by just a few firms, including TSMC in Taiwan and California-based Nvidia.
The United States is dependent on Asia for chip production, making it vulnerable to supply chain shocks, such as during the COVID-19 pandemic or in the event of a major geopolitical crisis.
“We’re already seeing AI revolutionize our world and grow at an unprecedented pace,” said Schumer.
“We cannot, cannot have these chips made overseas, especially by competitors like China. We cannot have them be the only supplier,” he added.
Apart from the grants to Micron, Biden is also expected to announce four new “workforce hubs” in the Upstate New York region, the state of Michigan, as well as the cities of Philadelphia and Milwaukee.
According to senior government officials, such hubs are a way to spur more commitments from employers and educational institutions.
© 2024 AFP
Explore further
Facebook
Twitter
Email
Feedback to editors
15 hours ago
0
16 hours ago
0
19 hours ago
0
Jun 3, 2024
0
Jun 2, 2024
0
9 hours ago
10 hours ago
10 hours ago
12 hours ago
13 hours ago
14 hours ago
15 hours ago
15 hours ago
16 hours ago
19 hours ago
Apr 15, 2024
Apr 8, 2024
Feb 26, 2024
Feb 19, 2024
Mar 21, 2024
Sep 1, 2022
16 hours ago
Jun 4, 2024
Jun 3, 2024
Jun 2, 2024
May 31, 2024
May 29, 2024
Use this form if you have come across a typo, inaccuracy or would like to send an edit request for the content on this page. For general inquiries, please use our contact form. For general feedback, use the public comments section below (please adhere to guidelines).
Please select the most appropriate category to facilitate processing of your request
Thank you for taking time to provide your feedback to the editors.
Your feedback is important to us. However, we do not guarantee individual replies due to the high volume of messages.
Your email address is used only to let the recipient know who sent the email. Neither your address nor the recipient’s address will be used for any other purpose. The information you enter will appear in your e-mail message and is not retained by Tech Xplore in any form.
Daily science news on research developments and the latest scientific innovations
Medical research advances and health news
The most comprehensive sci-tech news coverage on the web
This site uses cookies to assist with navigation, analyse your use of our services, collect data for ads personalisation and provide content from third parties. By using our site, you acknowledge that you have read and understand our Privacy Policy and Terms of Use.